Contract Law PDF

Module 1 Types of Employees -​ Probationary -​ A trial period of 6 months will be evaluated if fit to be a regular employee. -​ Terminated because does not qualify for the standards of the employer. -​ Regular -​ The employee has been engaged to perform activities that are usuall...

Module 1 Types of Employees -​ Probationary -​ A trial period of 6 months will be evaluated if fit to be a regular employee. -​ Terminated because does not qualify for the standards of the employer. -​ Regular -​ The employee has been engaged to perform activities that are usually necessary or desirable in the usual business or trade of the employer. -​ It can be terminated with just cause. -​ Project -​ employment has been fixed for a specific project or undertaking the completion -​ termination upon completion of project -​ of which has been determined at the time of the engagement -​ Casual -​ works only when needed, often without a fixed schedule or guaranteed regular hours. Module 3 Obligation -​ A juridical necessity to give, to do or not to do. Arise from: Sources of obligation: -​ Acts punishable by law -​ Law -​ Contracts -​ Quasi-contracts -​ Quasi-delicts ARTICLE 1170. Those who in the performance of their obligations are guilty of fraud, negligence, or delay, and those who in any manner contravene the tenor thereof, are liable for damages. ARTICLE 1159. Obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith. Contract -​ Is a meeting of minds between two persons whereby one binds himself, with respect to the other, to give something or to render some service. -​ Perfected by consent Elements of a contract -​ Consent -​ There is consent if there is an Offer and Acceptance. -​ Acceptance must be Absolute. -​ Acceptance can be Expressed or Implied. -​ Object -​ Subject Matter of a contract -​ Thing, Service, Determinate, Determinable -​ Cause -​ Prestation, Payment, Thing, Service, Liberality -​ Intent to be Bound -​ prestation=promise of a thing Module 4 Should contracts be written? -​ All other contracts where the amount involved exceeds five hundred pesos must appear in writing, even a private one. Art. 1358 - Needed to be in Public Document/notarized ​ Rights over Immovable Property or ​ Heir renounces “Hereditary” rights or Conjugal Partnership of Gains ​ Power that “prejudices” another person ​ Cession of Rights Appearing in a Public Document Solemn Contract -​ Not valid if not written. -​ Donation of Immovables -​ Donation of Movables worth more than 5,000 -​ contracts to pay Interest on Loans that must be "expressly stipulated in writing" Unenforceable unless ratified -​ Does not comply with Statute of Frauds -​ Requires to be Proved unless Excepted -​ Both of the parties are incapable of giving consent Voidable or annullable -​ A contract where consent is given through mistake, violence, intimidation, undue influence, or fraud. Article 1330 1.​ Cannot Give consent 2. Vitiated Consent -​ One of the parties are incapable of giving consent -​ Void and Binding unless Annulled by court action. They are susceptible of Ratification When? ARTICLE 1391. The action for annulment shall be brought within four years. Effect? Restitution or Return the thing Effect? If cannot return - he shall return the fruits received and the value of the thing at the time of the loss, with interest from the same date. Cannot give consent to a contract -​ Unemancipated minors -​ Insane or demented persons, and deaf-mutes who do not know how to write. ARTICLE 1328. Contracts entered into during a lucid interval are valid. Contracts agreed to in a state of drunkenness or during a hypnotic spell are voidable. Summary: Void Voidable Unenforceable Module 3 Lacks one of the 3 Vitiated Consent elements Module 4 Solemn Contracts Ratification of Voidable Article 1403 (2) Contracts -do not comply with Requires Public statute of frauds Document ratification= to make Exception Article 1409 something valid 1403 (3) Pari delicto -incapable of giving consent ARTICLE 1409. The following contracts are inexistent and void from the beginning: (1) Those whose cause, object or purpose is contrary to law, morals, good customs, public order or public policy; (2) Those which are absolutely simulated or fictitious; (3) Those whose cause or object did not exist at the time of the transaction; (4) Those whose object is outside the commerce of men; (5) Those which contemplate an impossible service; (6) Those where the intention of the parties relative to the principal object of the contract cannot be ascertained; (7) Those expressly prohibited or declared void by law. These contracts cannot be ratified. Module 5 Obligation -​ A juridical necessity to give, to do or not to do. 2 Classifications of obligations -​ To give -​ To do/not to do Rights -​ Compel Delivery -​ At creditors expense Damages -​ Fraud -​ Negligence -​ Delay (Demand) (Demand not necessary if impossible or time is stipulated) -​ Contravention Article 1170 Damages can be charged when, in the fulfillment of an obligation, there is fraud, negligence, delay or contravention of the terms of the contract. Module 6 1.​ Art. 1165 - Compel to make delivery of a determinate thing; generic complied with at debtor’s expense 2.​ Art. 1167 - fails to do, executed at his cost; Art. 1168 - not doing, undone at debtor’s expense 3.​ 3. Art. 1170 - fraud, negligence, delay, contravene the tenor of the contract - grounds for damages contracts where there is a substantial breach -​ Damages -​ Rescission Rescission -​ Undo a contract ARTICLE 1381. The following contracts are rescissible: Lesion - Damage ​ Guardian-ward with damage; no court approval ​ Absentee with damage ​ Fraud of creditors and no more recourse ​ Under litigation ​ Payments in insolvency (1) Those which are entered into by guardians whenever the wards whom they represent suffer lesion by more than one-fourth of the value of the things which are the object thereof; (2) Those agreed upon in representation of absentees, if the latter suffer the lesion stated in the preceding number; (3) Those undertaken in fraud of creditors when the latter cannot in any other manner collect the claims due them; (4) Those which refer to things under litigation if they have been entered into by the defendant without the knowledge and approval of the litigants or of competent judicial authority; (5) All other contracts specially declared by law to be subject to rescission. ARTICLE 1389. The action to claim rescission must be commenced within four years.